Alcoholic beverages: licensees.

(1) The Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon, alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Existing law authorizes the department to issue a special on-sale general license to any nonprofit theater company, as specified, for use at a single location. Existing law, known as tied-house restrictions, generally prohibits certain alcoholic beverage licensees, including manufacturers, from holding any ownership interest in an on-sale license, subject to a variety of exceptions. In connection with special on-sale general licenses issued to nonprofit theater companies, existing law creates an exception to tied-house restrictions, by permitting a licensed manufacturer, winegrower, manufacturer's agent, California winegrower's agent, rectifier, distiller, bottler, importer, or wholesaler, among others, to serve on the board of trustees or as an officer, director, or employee of a nonprofit theater company operating in the County of Napa and in the City of Livermore. This bill would extend the exception to tied-house restrictions provided to special on-sale general licenses for the trustees, officers, directors, and employees of nonprofit theater companies, described above, to a nonprofit theater company operating a theater in the City of Modesto. (2) Existing law provides that a licensee whose licensed premises were destroyed as a result of fire or any act of God or other force beyond the control of the licensee may carry on the licensee's business for a period of up to 180 days or six months, as applicable, at a location within 500 feet of the licensed premises while the destroyed premises are being repaired or rebuilt. This bill would revise these provisions to authorize a licensee to carry on its business at a substitute location, within 1,000 feet of the destroyed premises for a period of up to 180 days. The bill would authorize the Director of Alcoholic Beverage Control to extend that time period, as provided. (3) The Alcoholic Beverage Control Act generally prohibits a manufacturer, winegrower, distiller, bottler, or wholesaler, among other licensees, or agents of these licensees, from paying a retailer for advertising. The act creates a variety of exceptions from this prohibition, including permitting specified licensees to purchase advertising space and time from, or on behalf of, an on-sale retail licensee that is an owner, manager, or major tenant of certain stadiums, parks, entertainment complexes, and arenas, subject to specified conditions. This bill would expand the exceptions described above to allow beer manufacturers, winegrowers, distilled spirits rectifiers, craft distillers, distilled spirits manufacturers, or distilled spirits manufacturer's agents to purchase advertising space and time, in connection with described events, from, or on behalf of, on-sale retail licensees, as described above, at a for-profit theater with specified characteristics located in the City and County of San Francisco. The bill would require all payments for the purchase of advertising space and time to be made pursuant to a written contract with the owner of the theater, the licensee, or the long-term tenant, as appropriate. (4) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Modesto and the City and County of San Francisco. (5) This bill would declare that it is to take effect immediately as an urgency statute.